How Indiana law treats wrongful death proceeds and a decedent’s will

Short answer: Generally no — money recovered in a wrongful death action in Indiana is distributed under Indiana’s wrongful death statute for the benefit of the decedent’s survivors, not simply passed under the decedent’s Last Will and Testament. However, a separate survival (estate) claim can produce proceeds that become part of the decedent’s estate and therefore can pass under the will.

Detailed Answer

Indiana law recognizes two related but different causes of action after a person dies because of another’s wrongful act:

Wrongful death claim: This claim exists to compensate the decedent’s surviving spouse, children, or other next of kin for their pecuniary loss caused by the death. Money recovered for wrongful death is held and distributed for the benefit of survivors under the wrongful-death statute.
Survival (estate) claim: This is a separate claim brought on behalf of the decedent’s estate for losses the decedent suffered before death (for example, medical expenses, pain and suffering endured before death, lost earnings prior to death). Proceeds from a survival action become part of the decedent’s estate and can be distributed according to the decedent’s will or intestacy rules if there is no valid will.

Because the two causes of action serve different purposes, settlements and court awards are often allocated between wrongful death and survival components. The wrongful death portion benefits the statutory beneficiaries (survivors) and is not simply transferred by the decedent’s will. The survival portion is estate property and passes under the will or by intestate succession.

Where Indiana law says this

The relevant provisions appear in Indiana’s civil code governing tort actions after death (Title 34, Article 23). See the Indiana General Assembly’s codification of Title 34 for the wrongful death and survival provisions: https://iga.in.gov/laws/2024/ic/titles/34#34-23-1 and https://iga.in.gov/laws/2024/ic/titles/34#34-23-2

How distribution typically works in practice

A personal representative (or designated plaintiff under the statute) may file a wrongful death lawsuit on behalf of survivors. The court (or the parties in settlement) determines how much of any recovery is wrongful death damages and how much is survival damages.
Wrongful death damages are for the benefit of surviving family members (spouse, children, next of kin). Indiana law governs who may recover and how courts consider distribution; the statute and case law control the allocation and the person(s) entitled to recover.
Survival damages become part of the decedent’s estate. Those proceeds are administered by the personal representative and distributed under the decedent’s will (or by Indiana intestacy rules if there is no valid will).
If there are no statutory survivors eligible to receive wrongful death proceeds, a court may direct payment to the decedent’s estate — in that situation the wrongful death recovery might become estate assets and be governed by the will or intestacy rules.

Practical issues to watch for

Settlements often include a negotiated allocation between wrongful death and survival portions. The allocation changes who receives the money.
Health insurers, Medicare, or Medicaid may assert liens or reimbursement claims against proceeds for medical costs paid because of the injury or death.
Survivors and personal representatives should confirm statutory deadlines, who has standing to file, and whether the settlement requires court approval.

Helpful Hints

Preserve documents: collect medical bills, pay records, proof of relationship (marriage certificate, birth certificates), funeral bills, and any evidence about losses the family suffered.
Identify who has the right to sue: under Indiana law a specific person or the personal representative usually brings the action for the benefit of survivors—confirm who that is early on.
Ask for clear allocation in any settlement: when settling, request that the agreement specify which portion is survival damages (estate property) and which portion is wrongful death damages (for survivors).
Check for liens: notify insurers and review potential Medicare/Medicaid/insurer reimbursement obligations before closing a settlement.
Consult a lawyer experienced in Indiana wrongful death and probate law: an attorney can explain how the law applies to your facts, negotiate allocations, and coordinate probate administration if estate assets are involved.
If there are no surviving spouse/children/next of kin, ask whether the wrongful death proceeds will pass to the estate and thus be governed by the will.
Keep timing in mind: statutes of limitations and procedural rules can bar claims if you wait too long — get legal guidance promptly.

When the decedent’s Will does control

Only amounts that are part of the decedent’s estate — for example, survival-action proceeds — are distributed according to the Last Will and Testament. If wrongful death proceeds are held for the estate (for example, because no statutory survivors exist), then those proceeds become estate property subject to the will.

Where to get help

Contact an Indiana attorney who practices wrongful death and probate law to get advice tailored to your situation. An attorney can explain how the wrongful death statute and probate rules apply to your facts, evaluate any estate claims, and work to protect survivors’ and the estate’s interests.

Disclaimer: This article explains general principles of Indiana law and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Indiana attorney.